JM602 Consumer Behaviour

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JM602Consumer Behaviour

• Lecture 4 Information search

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(No Transcript)
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Material in these slides

• Primarily drawn from
• Neal, Quester and Hawkins (2005). Consumer
  behaviour Implications for marketing strategy
  (4th ed). McGraw-Hill Irwin Queensland

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Information Search

• What is information search?
• What are the key types and sources of information
  used by consumers?
• What is the difference between evoked, inept and
  inert sets of brands?
• Why do consumers engage in information search?

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Lecture overview

• How is the Internet used as an information
  source?
• What are the factors that affect the amount of
  external information search?
• What marketing strategies can be developed based
  on different patterns of search behaviour?

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What is the nature of information search?

• Internal search versus external search
• Deliberate external search also occurs in the
  absence of problem recognition
• Ongoing search or exploratory research
• Also a function of individual, product, market
  and situational factors

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What types of information do consumers seek?

• The appropriate evaluative criteria for the
  solution of a problem
• The existence of various alternative solutions
• The performance level or characteristics of each
  alternative solution on each evaluative criterion

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Information search in consumer decisions
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Suggesting evaluative criteria that match the
brands strengths
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Brands in Initial Awareness Set
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Categories of Decision Alternatives
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Awareness and Evoked Sets for Various Products
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What information sources do consumers use?

• Memories of past searches, personal experience
  and low-involvement learning
• Personal sources, eg family and friends
• Independent sources, eg. Choice magazine
• Marketing sources, eg websites, advertising
• Experiential sources, eg product trial

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Information sources for a purchase decision
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Sources of Information for Services
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Information Search on the Internet

• 2004 surveygt80 Australian population have a
  computer
• Most important reasons for surfing were
• to look for information (40), leisure (19),
  to shop (18)
• Internet is the most popular information source
  for students (2003 survey)
• Over half of e-shoppers are women, taking over
  from males
• 73 of those with Internet at work use it every
  morning

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Marketing Strategy and Information Search on the
Internet

• Companies need to ask
• Should we have a web site?
• What is the purpose of the site to be?
• Information only
• Company and product/service information
• To actively attract customers
• A shopping site

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How much external information search do
consumers do?

• Measures used
• No. of stores visited
• No. of alternatives considered
• No. of personal sources used
• Overall or combination measures
• External information search is skewed towards
  limited search

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Amount of External Search for Appliances
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Classification of Searchers

• Non-searchers do not engage in information
  search before purchasing
• Limited information searchers undertake limited
  information search before purchasing
• Extended information searchers

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Information Searching Behaviour
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What other factors affect the amount of
information search?Costs vs Benefits of
External Search
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Market characteristics
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Product characteristics
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Consumer characteristics
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Situational characteristics
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Marketing Strategies Based on Information-Search
Patterns
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Strategies (habitual decisions)

• Maintenance strategy
• If target market purchases brand habitually, then
  the strategy is to maintain that behaviour
• Defend against disruptive tactics
• Constant activity interest
• Disrupt strategy
• If brand is not in evoked set, then marketer
  needs to disrupt normal buying patterns
• Attention-seeking ads
• Free samples or bonus encouraging trial
• Capture strategy
• Constant supply quality
• Continue limited search

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Limited decision making

• Capture strategy
• If the existing brand is one of the brands in the
  evoked set then the objective is to capture as
  large a share of purchases as possible
• Provide additional information to consumers
• Use co-operative advertising, Point of purchase
  (POP) displays, adequate shelf space
• Intercept strategy
• Must intercept consumer during search for
  information on brands in evoked set
• attract attention, POP display
• Product improvements, etc.

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Extended decision making

• Preference strategy
• Search locations must be anticipated, e.g.
  Chemists
• POP sales assistance
• Acceptance strategy
• Motivate the consumer to learn about the brand
• Advertise but dont sell the brand
• Encourage consumer to seek information

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Next Lecture

• Evaluating and Selecting Alternatives